Small Cap Feast

Small Cap Feast – 15 October 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 875

Total number of AIM Companies trading: 791*
* As at 14 October 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 87*

Total number of NEX Growth Market Companies trading: 85*
* As at 14 October 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 165*

Total number of Standard List Companies trading: 143*
* As at 14 October 2019

Dish of the Day:

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What’s Cooking in the IPO Kitchen?

Main Market premium

Registration document approved for Helios Towers. The Group provides essential network services, flexible infrastructure solutions and reliable power supply to mobile network operators  in five African growth economies.  Revenue increased 7 per cent. year-on-year to US$191m (H1 2018: US$178m), with Adjusted EBITDA up 15 per cent. year-on-year at US$99m (H1 2018: US$86m) for the six months ended 30 June 2019. Pricing rumoured at 115p to 145p implying valuation of up to $1.8bn. Expected Oct 2019.

Breakfast Buffet

Sareum Holdings* (SAR) 0.34p £10.44m

Sareum Holdings, the specialised small molecule drug development business, announces its results for the year ended 30 June 2019 and provides an update of significant post-period events. The Company will host a conference call today at 10.00 a.m.

Highlights

Proprietary Selective TYK2/JAK1 Inhibitors in Autoimmune Diseases and Cancer. Advancing two distinct molecules selected from proprietary dual tyrosine kinase 2 (TYK2) / Janus kinase 1 (JAK1) programmes as potential once-daily, oral immunotherapies for autoimmune diseases (SDC-1801) and cancers (SDC-1802).

o  Human clinical trials are targeted to start in late-2020, subject to successful progress and financing – Programmes continue to attract interest from international pharmaceutical companies

£0.8m raised post year end.  “We continue to believe, based on the promising clinical and preclinical data generated to date, that Sierra has every chance of finding a suitable solution that will enable the development of SRA737 to advance. This, in due course, would lead to Sareum receiving the milestone payments under the licensing agreement “

Agronomics Limited (ANIC) 6.25p £7.5m

The Board of Agronomics Limited announces an investment in the plant-based alternative protein company Seattle Food Tech, Inc. trading as Rebellyous Foods. The investment is USD $250,000.00 (the “Subscription”) in the form of a Simple Agreement for Future Equity (the “SAFE”), that will convert to approximately 1% equity in the next priced funding round. Rebellyous is an early stage, pre-revenue food technology and manufacturing company focused on developing plant-based chicken nuggets at scale to be price competitive with conventional chicken nuggets. Based in Seattle USA, their cash burn rate is approximately US$ 83,000 per month. The Subscription will be paid using cash from the Company’s own resources.

This is Agronomics’ first investment in the plant-based space, to complement its existing portfolio of cultivated meat and pet food companies. The team at Agronomics believe this investment supports the need for sustainable food alternatives to existing meat products.

Open Orphan (ORPH) 6.3p £16m

Open Orphan, a European-focussed, rare and orphan drug consulting services platform, announces it has signed a new strategic collaboration agreement with Empiric Logic to build on the earlier work performed by Open Orphan and complete the build out of Open Orphan’s Health Data platform, Europe’s first rare disease, advocacy-led genomic database.

Empiric Logic, a leading managed software service company which provides software to the Life Sciences, Pharma, Pharma Services and Biotech sectors, will incorporate its propriety, privacy preserving, and artificial intelligence enabled software into Open Orphan’s Health Data platform to aid the collection and management capabilities of the software.

The Collaboration is the final stage in the completion of Open Orphan’s Genomic Health Data platform and will speed up its launch. The platform builds on the genomic analysis, database architecture know-how and prior professional experience between the founders of Empiric Logic and Maurice Treacy, Chief Commercial Officer at Open Orphan.

Crossword Cybersec* (CCS) 435p £19.4m

Crossword Cybersecurity, the technology commercialisation company focused solely on cyber security and risk, announces that it has signed a Memorandum of Understanding (MoU) with Leonardo MW Ltd, a global high-tech Aerospace Defence and Security company.

Crossword is rapidly becoming a leading player in the provision of risk assurance systems. Rizikon Assurance allows organisations to assess, assure, visualise and, ultimately, control third party risk.

The cooperation between Crossword and Leonardo will enable Leonardo’s National Cyber Security Centre’s certified cyber consultancy to use Rizikon Assurance to enhance its leading risk assessment and risk management practice for customers throughout the world.  Leonardo targets its cyber security offerings at Government, Defence and Critical National Infrastructure both in the UK and internationally.  Supporting that offering with industry-leading tooling such as Rizikon Assurance, will further improve outcomes for customers.

Science Group (SAG) 193p £79.35m

The statutory merger of Frontier Smart Technologies Group Limited became effective on 11 October 2019. Trading in Frontier shares was suspended on 14 October and the AIM listing of Frontier Group is anticipated to be cancelled on 21 October 2019. Settlement of the consideration payable to qualifying shareholders is anticipated shortly thereafter. This process completes the acquisition of Frontier Group by Science Group.

Frontier Restructuring

The restructuring plan of Frontier Smart Technologies Limited (“Frontier”), the UK trading subsidiary along with its subsidiaries, has now been confirmed and is being implemented.

Nostra Terra O&G Co (NTOG) 1.25p £2.37m

Nostra Terra, the oil & gas exploration and production company with a portfolio of development and production assets in Texas, USA, provides an update on permitting at the Company’s Mesquite asset, as well as a general corporate update.

Highlights

Completion of leasing 160-acre standalone asset within the Mesquite asset. Lease is surrounded by commercially productive wells on all four sides

The lease provides an excellent opportunity for horizontal drilling. Well design complete, and well permitting currently underway

Production from existing assets remains in line with that reported in the Company’s 30 June 2019 interim results.

Company continuing its evaluation of potential acquisition targets

Driver Group (DRV) 53p £26.9m

Driver Group, the leading global professional services consultancy announces the following operational update on its activities.

Driver Group has performed well during the second half of 2018/19 and, as a result, expects to report underlying PBT for the financial year of approximately £3m (H1: £0.8m), after incurring one-off costs amounting to £0.4m which were incurred as part of a rationalisation of its cost base.

The Group’s global operating footprint has proven to be a source of operational resilience, with a strong performance in the UK and Europe offsetting a weaker result in the Middle East and Asia Pacific regions.  Period-end net cash balances were approximately £5m after funding dividend and share buyback payments during the year.

Frontier IP Group (FIPP) 57.5p £24.4m

Frontier IP, a specialist in commercialising university intellectual property, today announces it is taking a 43% equity stake in Elute Intelligence Holdings Limited. The Company is developing novel software tools to intelligently search complex documents, such as patents and contracts, and to detect evidence of plagiarism, collusion and copyright infringement.

Elute is being formed from an existing UK business, CFL Software Limited, and will also include complementary intellectual property developed by Frontier IP. In addition to the IP, the Group will also earn its equity by providing a range of commercialisation services, such as facilitating scale up and direct, hands-on support for technical development through its in-house development capability. No cash consideration has been paid by the Group for its equity stake in Elute.

Murgitroyd Group (MUR) 675p £60.8m

The board of Murgitroyd notes the recent movement in the Company’s share price and confirms that it is in advanced discussions in relation to an indicative proposal received from Sovereign Capital Partners LLP to acquire the entire issued and to be issued share capital of Murgitroyd at a price of 675 pence in cash.

GAN (GAN) 90p £73.28m

GAN plc, an award-winning developer and supplier of enterprise-level B2B Internet gaming software, services and online gaming content in the United States, has agreed to supply its Simulated Gaming software to the Agua Caliente Band of Cahuilla Indians , with new services anticipated to launch to customers in Q1 2020.

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

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